Re: Rankine Bros Pty Ltd

The case before the Supreme Court of Queensland involves an application by Roy McNay Rankine against his brothers, Trevor George Rankine, Keith Scott Rankine, and Ralph McAuslan Rankine, and the company Rankine Bros Pty Ltd. Roy seeks an order that the company be wound up or, alternatively, an order that his brothers purchase his shares in the company. The legal issues revolve around the valuation of Roy's shares and the impact of any oppressive conduct by the respondents on that valuation. The court must also determine the appropriate date for valuation, the impact of taxation consequences and costs of realising assets on the valuation, and whether interest should be paid.

The court found that while the respondents had engaged in oppressive conduct, this did not warrant an adjustment in the valuation of Roy's shares. The oppressive conduct did not diminish the value of the company or its shares. The court selected 30 June 1996 as the date for valuation, considering it fair to both parties. The valuation of the company's assets, particularly plant and equipment, was difficult due to their age and lack of a ready market. The court adopted a conservative approach in valuing these assets. The valuation of the shares was conducted on a net asset backing basis, considering the orderly realisation of assets over five years. The court valued Roy's shares at $1.7 million. The court declined to award interest, finding no entitlement to interest until a purchase order is made.

The final orders were that the respondents purchase Roy's shares for $1.7 million, the proceedings were adjourned for the submission of minutes of judgment, costs were reserved for later determination, and liberty to apply was granted.